GCB Bank posts impressive performance

GCB Bank has recorded a profit before tax of GH¢610.83 million in 2020, up from the GH¢573.67 million recorded in 2019.

This represents a growth of 6.5 per cent.

Net interest income also increased by 29.1 per cent; from GH¢1.16 billion in 2019 to GH¢1.5 billion, with net trading income increased from GH¢141.75 million in 2019 to GH¢166.63 million, representing an increase of 17.6 per cent.

The bank also increased net fees and commissions by 15.1 per cent; from GH¢241.51 million in 2019 to GH¢277.98 million.

Operating income also increased from GH¢1.57 billion in 2019 to GH¢1.96 billion, representing an increase of 25.1 per cent, while operating expenses increased by 22.2 per cent; from GH¢924.58 million to GH¢1.12 billion due to Covid-19 related expenses.

The bank’s total assets also increased from GH¢12.52 billion in 2019 to GH¢15.45 billion, representing an increase of 23.5 per cent.

The growth was funded largely from a 21.8 per cent increase in deposits from GH¢9.82 billion in 2019 to GH¢11.96 billion in 2020.

GCB’s share price ended the year at GH¢4.05, after experiencing volatility during the year with a high of GH¢5.10 and a low of GH¢3.40, the lowest in four years.

This was as a result of the strong adverse effect of Covid-19 pandemic on stocks listed on the Ghana Stock Exchange (GSE) with financial stocks suffering the biggest hit.

Payment of dividend

As a result of the impressive performance, the board of the bank has approved the payment of a dividend of 25 pesewas per share.

At the bank’s 27th annual general meeting (AGM) which was held virtually, the Board Chairman of GCB Bank, Mr Jude Arthur, said the bank decided to pay dividend after receiving a regulatory approval from the Bank of Ghana.

He said the approval was given due to the bank’s 2020 profit, strong capital base and liquidity.

On the financial performance of the bank, he said despite the challenges of the COVID-19 pandemic, the improvement in financial results was supported by balance sheet growth and income diversification.

Alleviating impact of COVID-19

Mr Arthur said as part of measures to alleviate the impact of COVID-19, the bank engaged its customers, identified those in the hardest hit sectors of the economy and supported them with concessionary rates and moratorium on principal and interest on loan facilities.

As a result, he said the bank restructured loans totalling GH¢799.92 million to 130 corporate and SME customers.

He said the bank also invested in Personal Protective Equipment (PPE) and broader COVID-19 protocols to ensure the health and safety of clients and employees.

Way forward

On the way forward, the Board Chairman said the bank recognised the need to stay nimble and innovative in the dynamic banking industry in order to sustain its competitive advantage in 2021 and beyond.

He said despite the fact that the bank had made good progress over the years, it had refreshed its strategy and sharpened its pillars on three identified pillars: revenue growth and profitability; operational resilience; talent development and an enabling culture.

He said the bank’s ambition was to assume the leadership position in the wholesale banking market while strengthening its dominance in the retail banking market.